Foxconn reported new progress in its artificial intelligence hardware strategy during its tech day event. The company announced that it can now produce about 1,000 AI racks each week. It also revealed that this output is expected to rise next year. The update came from Chairman Young Liu at an event attended by Nvidia, OpenAI, and other partners. The information was first reported by Reuters.

Foxconn, known as Apple’s main iPhone assembler, has been expanding into electric vehicles and AI focused data center systems. It is now Nvidia’s primary manufacturer of AI racks, which are server units designed for AI workloads and built with chips, cables, and related components. This position has aligned the company with the global increase in data center investment.

Cloud providers are allocating more spending to support AI models and research capacity. As a result, Foxconn has seen stronger demand for AI related infrastructure. Last week, it reported that AI will likely play a major role in its 2026 growth plans.

Liu also stated that electric vehicle production has reached a level where automakers may outsource more manufacturing to Foxconn. He said the company plans to demonstrate vehicle designs made for the Japanese market. He added that Foxconn has begun work in quantum computing.

In another address, Neo Yao, CEO of Foxconn unit Visionbay.ai, announced plans for a 27 megawatt data center using Nvidia’s GB300 chips. It is scheduled for deployment in the first half of 2026. Yao reported that it will be the largest advanced GPU cluster in Taiwan and Asia’s first GB300 based AI data center, according to Reuters.

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